TULSA, OK-With plans to sell the trophy office buildings known as Warren Place I and II, Parmenter Realty Partners has obtained two CMBS loans totaling $85 million. The new loan, originated by JP Morgan Chase, replaces an existing loan that tied the properties together through cross-collateralization, according to Parmenter COO Andrew Weiss.
“Our main objective is to sell the project, and the debt structure we have in place is going to afford us a lot of flexibility to sell the building individually or as a package,” Weiss tells GlobeSt.com, adding that the new loans are assumable. “We believe interest rates are going to rise, and we believe this loan will be accretive to value because of the interest rate.”
Parmenter has hired Michael McDonald in Eastdil Secured’s Atlanta office to market Warren Place I and II, which total 959,928 square feet. Located at the southwest corner of 61st Street and Yale Avenue, the buildings have performed well through the recession, Weiss says, pointing out that occupancy has stayed well above 90% and rents continued to increase.
Major tenants in Warren Place I include: Linde Process Plants Inc.; McKesson Corporation; Petrohawk Energy Corporation; and Questar Corporation. Warren Place II’s major tenants include: Semgroup LP, Apache Corporation; DCP Midstream Partners LP; and Trust Company of Oklahoma.
In looking to refinance the existing loan for Warren Place I and II, Weiss says it was critical to find a lender that was willing to provide two separate loans. He explains that the CMBS structure allowed Parmenter to get the best long-term, fixed-rate deal. The loans featured a seven-year term and 30-year amortization. The financing represented 75% of the buildings’ total value.
“Operating in the CMBS world today… it wasn’t that different than in the past, but I can tell you that JP Morgan did an incredible and very thorough job underwriting the deal and made the execution smooth,” Weiss notes.
This recent refinancing is the third time Parmenter has refinanced Warren Place I and II since it acquired the properties in June 2005. At that time, the Miami-based firm paid $75.75 million for the assets.
A team of CBRE Capital Markets professionals arranged the loan for Parmenter. The team included: Charles J. Foschini, vice chairman of CBRE’s Debt & Equity Finance and Institutional Group; Christian R. Lee, vice chairman of CBRE’s Institutional Group; Christopher A. Apone, vice president of CBRE’s Debt & Equity Finance; and Gregory Greene, senior vice president in CBRE’s Debt & Equity Finance in CBRE’s Dallas office.
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